ENVIRONMENTAL REPORT 08

Transcription

1 ENVIRONMENTAL REPORT 8

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3 Letter from the management This has been a year of great challenges, such as the company s inclusion in the Spanish stock market index IBEX-35. Despite the fact that the effects of the global economic crisis began to be felt, Grifols turnover reached 814 million euros, an increase of 15.8% over the previous year. Sales from the Bioscience Division rose 23% owing to strong sales of products like albumin, intravenous immunoglobulin (IVIG) and Factor VIII. All divisions reported growth in production. In order to respond to increasing market demands for our products, we have opened new plasmapheresis centers and expanded some of the existing centers in the USA, giving the company a total of over 8 centers. As a result, we have ensured the supply of our main raw material, plasma, for our production centers. The investments set out in the strategic plan are making steady progress. The plan included the purchase of an industrial complex in Parets del Vallès (Barcelona) in order to centralize the group s logistics organization. It also included the launch of the new sterile dosing area for coagulation factors and the construction of a new production plant for Flebogamma DIF in the United States. Production capacity for DG Gel cards was increased through a new preparation area in the Diagnostic Division. Another large investment went to the acquisition of an office complex in Sant Cugat del Vallès as the future corporate headquarters of the group. Grifols business strategy is focused on increasing its international presence. In 28, the company obtained a license to market the latest generation Flebogamma DIF in Australia. The Hospital Division is positioning itself to offer various hospital logistics projects to centers in Spain, Portugal and Latin America. The Diagnostic Division has penetrated the French market with its WaDiana autoanalyzer, and has taken the first steps to launch the product in China and Mexico. As a result, 72.8% of our turnover is generated outside of Spain. The increase in production which is described in this report has been planned in parallel with improvements in ecoeffi ciency, meaning fewer resources, and less energy and water consumed per unit manufactured. Rises in production have been accompanied by a large influx of new staff. In Spain and the United States alone more than 75 new staff have been recruited. I would like to make special mention of Grifols R&D, which has for the second consecutive year earned the maximum rating of Excellent in the Plan Profarma 28. An initiative of the ministries of Industry and Health, the Plan Profarma is aimed at promoting scientific research, development and technological innovation in the pharmaceutical industry. R&D is vital to the company s present and future growth and forms an integral part of all Grifols divisions. Before I conclude, I would also like to mention the 1th anniversary of the Victor Grifols i Lucas Foundation. Over the past 1 years, the foundation has established itself as one of the main forums for debate in biology, medicine and the ethical principles which guide our decisions. Finally, I would like to thank all of our employees for their efforts and active participation in achieving our goals and for their contribution to making our company ever better. Investments in environmental infrastructures carried out in 27 have borne fruit in 28. At the beginning of June, the new cogeneration plant began operating, greatly reducing CO 2 emissions. The high yield wastewater purification facility in Parets del Vallès will reduce the waste parameters of residual water. Investments in environmental assets in 28 will reduce our environmental impact. The main investments were designed to increase the company s capacity for treating its principal waste products and to optimize water consumption. We continue to work to achieve the objectives of the Environmental Program which establishes priorities for continued improvements. J.I. Twose Vice President GRIFOLS, S.A.

4 Biological Indicators Bioindicators are organisms which reveal clues as to the status of their environment or ecosystem. These species (or their remains) help to show any current or past phenomenon which have affected the habitat. Bioindicator species have physical and chemical requirements which depend on habitat structures and their relationship with other species. Each species or population can withstand, within certain limits, certain environmental conditions for survival (maximum limits), growth (intermediate limits) and reproducing (narrowest limits). Fish are often used as bioindicators for determining the ecological state of rivers and bodies of water.

5 1. Grifols holding company 5 2. Environmental organization Environmental performance Objectives Environmental training, awareness and comunication Investments and expenses 51

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7 Amphiprion ocellaris Clownfi sh Habitat: Western Pacifi c Ocean. Lives in corral reefs at a depth of no more than 2 metres. 1. Grifols holding company

8 6 Environmental report Grifols holding 1. Grifols holding company 1 Bioscience Division 2 Hospital Division 3 Diagnostic Division GRIFOLS is a group of companies in the pharmaceuticalhospital sector specializing in the research, development, production and sale of plasma derivative products, intravenous therapies, clinical nutrition, in vitro diagnostic systems, applied engineering for the pharmaceutical sector and medical devices. Grifols is present in over 9 countries. The holding comprises three divisions offering specialized products and services which are grouped together according to the specific needs they address: Bioscience Division: This division specializes in the research, development, production and marketing of high-quality plasma derivatives. These products, which are purified with therapeutic properties, are obtained from fractionated human plasma from donations. An exhaustive control system ensures that the various processes, ranging from the donation stage to the therapeutic use of the product, meet quality standards, thereby enabling us to guarantee our patients safety. Plasma, the primary material for this division, is supplied by a network of 8 plasmapheresis centers approved by the American Food and Drug Administration (FDA). The production plants are located in Barcelona and Los Angeles. Grifols is currently Europe s leading company in the plasma derivatives sector and the fourth largest manufacturer worldwide. Hospital Division: This division specializes in non-biological products for the hospital pharmacy sector, such as parenteral and intravenous solutions, irrigation and washing solutions and clinical nutrition products. It is also responsible for distributing hospital logistics products. Diagnostic Division: This division specializes in the research, development, manufacture and marketing of in vitro diagnostic products for clinical test laboratories. Its diagnostic systems comprise auto-analyzers, reagents and software for use in hospital blood banks and blood transfusion centers. Grifols holding company also offers the following services to its companies: administration, engineering, maintenance, safety, environment, documentation, human resources, IT systems, etc. as well as logistics and commercial services.

9 Grifols care for environment 7 COMMERCIAL AREA AND SERVICES INDUSTRIAL AREA LOCATION Bioscience Instituto Grifols Parets del Vallès (Spain) Grifols, S.A. Grifols, Inc. Grifols Engineering Grifols Biologicals Biomat Biomat USA Los Ángeles (USA) Parets del Vallès (Spain) USA Movaco Logister Grifols Viajes Grifols International Grifols Deutschland Plasmacare USA Hospital Laboratorios Grifols Parets del Vallès (Spain) Murcia (Spain) Diagnostic Diagnostic Grifols Parets del Vallès (Spain) Laboratorios Grifols Murcia (Spain) Grifols Czech Republic Grifols France Grifols Italia Grifols Polska Grifols Portugal Grifols Slovakia Grifols UK Grifols Argentina Grifols Brasil Grifols Chile Grifols México Grifols Asia-Pacific Grifols Japan Grifols Malaysia Grifols Thailand Grifols USA, Inc.

10 8 Environmental report Grifols holding International presence Mexico 1993 France 1999 Spain UK 1997 Germany 1997 Poland 24 Italy 1997 Czech Republic 1992 Slovak Republic 1997 Singapore 2 Thailand 23 Japan 26 Brazil 1998 Malaysia 23 Production Centers 1.1 Financial dimension 1 Screen displaying the status of Grifols stock in the stock market. Since May 26, Grifols has been listed on the Spanish Stock Market and since January 28 it has formed part of the IBEX 35 index which comprises the top 35 Spanish companies by adjusted market capitalization and trading volume. It is also a constituent of various international indexes, such as the DJEuro Stoxx and the DJ Stoxx 6, as well as the corresponding sector indexes. Foreign markets accounted for 72.8% of Grifols total revenue in 28. International sales totaled million euros, up 18.2% on the previous year. By region, Europe contributed 49.8% of the group s revenue, while the US generated 35.7%, Latin America 9.3% and Asia 4.1%.

11 Grifols care for environment 9 Figures Total sales 2-28 (in millions of ) EBITDA reached million euros, up 32.85% from 27 Net profi t increased 38.7% in 28 to million euros. Grifols stock value (GRF): the value has grown approximately 18% (since the stock was fi rst listed on the market in 26) Hospital Sales in the Hospital Division in 28 rose 1.6% year on year to 82.6 million euros. The division currently contributes 1.1% of total revenue. All areas of this division registered gains, particularly the products from the Hospital Logistics area, which has helped the group become a leader in specific solutions to improve efficiency and quality of hospital pharmacy services in Spain, Portugal and Latin America. In the fi nal quarter of 28, Blispack was launched. This system automatically cuts, repackages and prints out labels for blisters for hospital use and is designed to reduce medication errors. Performance by division Bioscience The Bioscience Division saw a turnover of 66.2 million euros in 28, up 22.9% on 27. This division accounts for 74.4% of the Group s total revenue. Grifols obtained the license to market Flebogamma DIF, the next generation intravenous immunoglobulin (IVIG), in Australia. Construction of a new plant for the production of this plasma derivative began in 28 and will be fully operational toward Diagnostic This division posted sales of 85.7 million euros in 28, a 7.5% increase on 27, and comprises 1.5% of the total business. WADiana was a main contributor to the growth in this division following its launch onto the French market in 28 and its continued success in penetrating the Chinese and Mexican markets. Sales in clinical diagnostic reagents (DG Gel cards), which are used with instruments from the Immunohematology line, are expected to increase over the next few years. 1 A new sterile dosing area for coagulation factors was put into production in the Los Angeles plant in the second half of the year after obtaining licensing from the FDA in a period of four months. 28 also saw the construction of a new production plant for biological fibrin sealant in Barcelona. Spanish and Italian health authorities granted licensing to market Niuliva, an intravenous solution containing human antihepatitis B immunoglobulin.

12 1 Environmental report Grifols holding Total sales 2-28 (in millions of ) Hospital 1.1 % Raw materials and other 5. % Latin America 9.3 % Asia-Pacific 4.1% ROW 1.1% 1 Presentations of Flebogamma DIF for Australia 2 Grifols new building in Sant Cugat del Vallès Diagnostic 1.5 % Sales by division Bioscience 74.4 % North America 35.7 % Sales by Geographic area Europe 49.8 %

13 Grifols care for environment 11 GRIFOLS milestones in 28: Grifols joins the IBEX-35 index in the Spanish Stock Market. Grifols obtains the license to sell Flebogamma DIF the new generation intravenous immunoglobulin (IGIV), in Australia. Construction begins on the manufacturing plant of Flebogamma DIF in the United States. Start up of the new coagulation factor sterile filling activity in the plasma derivatives plant in Los Angeles. Acquisition of a 31, m 2 industrial complex in Parets del Vallès (Barcelona) for the logistical structure of the group and other departments. Opening and expansion of plasmapheresis centers in the United States, now totaling 8. Completion of a new preparation area to increase production capacity of DG Gel cards. Increase in Grifols pay-out of 4% of the net profit compared to the previous 28%. Grifols acquires a complex of offi ces in Sant Cugat del Vallès (Barcelona) which will house the new corporate headquarters of the group. Grifols joins the ECO1, an index created by El Economista newspaper and Dow Jones Stoxx with the collaboration of 52 investment firms. The Martín Villar research prizes on hemostasis are awarded as part of Grifols commitment to the development and promotion of research. ASSET Prize (Spanish Association of Business Financiers and Treasures) for Financial Excellence throughout the company s business history in the conduct of its fi nancial affairs, and for the effi ciency demonstrated in management through the integration of a variety of financial instruments. Award from the Professional Association of Chemists for an industrial activity which is sustainable and respectful of the environment. Recognition from the Spanish Society of Hospital Pharmacy for Grifols contribution throughout its history to hospital pharmacy management. 1 2 Honors and awards received in 28: Catalonian prize for the best entrepreneurial initiative of the year awarded by El Periódico de Catalunya. Rating of Excellent under the 28 Profarma plan of the Ministry of Industry, Commerce and Tourism for R&D and innovation.

14 12 Environmental report Grifols holding ROW: employees in the world Spain: Social Dimension EE.UU.: 3.66 Grifols has been present in the health sector since 194, manufacturing products and offering innovative services based on ethical values and responsibility. It has designed, manufactured and sold products aimed at improving health for over 6 years. Our priority has always been to offer our patients efficiency, quality and safety. Workforce 2% 35% Despite the difficult situation of the world economy, Grifols has continued to create employment during 28. Its workforce has grown 16% to reach 5,55 employees. age distribution of staff 56% of Grifols employees work in the United States and 39% in Spain. The remaining number of employees work in countries in which Grifols has commercial distribution. 45% 54.5% of the workforce is female and 45.5% is male, which is similar to the distribution observed in previous years. From 18 to 3 years old From 31 to 45 years old Older than 45 Men 45.5% Distribution by sexes Women 54.5%

15 Grifols care for environment 13 Number of Grifols employees International Spain Staff training At Grifols, training is geared towards personal development. Specialist training is also provided in order to ensure that production personnel fulfill their tasks in a satisfactory way. An average of 31 hours was spent training each employee in Spain. The Portal, a new intranet website for employees was launched in 28. New SAP-based computer applications were also launched. In October 27, Grifols signed an educational venture with the Catalan Regional Government to promote professional training and assist its less-qualifi ed collaborators in updating their skills. This initiative gives collaborators the opportunity to obtain academic accreditation for their experience in the pharmaceutical manufacturing industry. It also allows collaborators to take part in an educational program, both at an intermediate and advanced level, in pharmaceutical product manufacturing. Thanks to this initiative, professors have been invited to our facilities to help adapt professional training to the realities encountered day to day at companies. In 28, 35 employees and 4 professors participated in this training. The United States has launched a TEAM Management (Trust, Excellence, Accountability and Making a Difference) program in order to develop interpersonal, tactical and strategic abilities for the management teams in production, corporate and plasma donation centers. Grifols Campus has seen increased activity in the form of an online training program with in-house courses. This application has been extended to the subsidiaries as an active on-line product training tool. Grifols subsidizes other types of training in external centers for its employees.

16 14 Environmental report Grifols holding Research, Development and Innovation Grifols has teams of professionals working to develop products and services for ever more effective treatments and reliable diagnostics to improve the quality of life for patients. The R&D team is made up of 197 employees and in 28 was funded by 28.5 million, or 3.5% of sales. From 23 to 28, Grifols spent more than 1 million Euros on research with more than 3 patents registered. As of December 31, 28, the number of products, patents and registered trademarks are as follows: Licensed Products Bioscience Hospital Diagnostic Total ,26 The Bioscience Division explores new methods for obtaining, purifying and stabilizing proteins, as well as new therapeutic uses for them. Additionally, R&D performs research on methods to prevent and eliminate any potential presence of pathogens and to increase production yield. Patents Bioscience Hospital Diagnostic Otras Total Josep Egozcue conferences 2 Awards ceremony at the Josep Egozcue conferences The Hospital Division researches new products for I.V. therapy, clinical nutrition, specifi c equipment for the preparation of intravenous mixtures in the hospital pharmacy and medication prescription and administration control systems for patients. The Diagnostic Division dedicates its research to developing new, increasingly sensitive diagnostic devices that provide more reproducible results which helps the task of the clinical diagnostics laboratory. This division also creates new diagnostic reagents for immunohematology and autoimmunity. The company s production plants are likewise representative of the technological innovations brought about by R&D activities. Grifols received the rating of Excellent under the 28 Profarma plan of the Ministry of Industry, Commerce and Tourism. The Profarma plan aims to foster scientific research, development and technological innovation in the pharmaceutical industry. GRIFOLS Registered Trademarks Bioscience Hospital Diagnostic Holding Total ,429

17 Grifols care for environment 15 La Fundació The Victor Grifols i Lucas Foundation was founded in March 1998 and is dedicated to promoting the study and development of bioethics in human health in general and in the pharmaceutical industry in particular. The Foundation celebrated its X anniversary this year. Over the last ten years this organization has become one of the main forums for debate on how we can apply human values to advances in biology and medicine. Its objectives are to: 1. To promote research in specifi c areas of bioethics by awarding grants and prizes. 2. To organize conferences, seminars and workshops which raise awareness of and explore the ethical issues which are constantly raised by the life and medical sciences. 3. To produce publications disseminating the work of the Foundation, and other documents relating to bioethics. 4. To work with organizations, universities and other educational institutes to conduct research work and to produce publications which contribute to a deeper understanding of the ethics of life. The Foundation s latest endeavour, the Ethical Questions series, was launched this year. The objective of this initiative was to bring different experts together to discuss a topic related to bioethics and to define different standpoints. The ideas discussed during these sessions were subsequently published. This year the Foundation tackled ethical questions such as emotional and sexual education and how to deal with repeat sexual offenders. The Foundation s headquarters are located in the most emblematic building of Grifols, which is also home to the newly-renovated Grifols Museum. The Foundation s webpage is: In 28, the Foundation organized the following activities to carry out its objectives: 1. Debate workshops in bioethics: Waiting lists: can we improve them? 2. Conference series: The person as the subject of medicine 3. Awards and research grants ceremony 4. New publications like the Ethics Monographs Collection. Informed consent and cultural diversity; Considering the problem of patient competency; Health information and the active participation of users; Ethics of Medical Communications.

18 16 Environmental report Grifols holding 1.3 Environmental Dimension The company has pursued its economic and social progress while duly carrying out its environmental responsibilities at all times. In line with the increase in production in the different divisions, we have adapted our activities and facilities accordingly to comply with environmental guidelines. Additional initiatives were aimed at reducing our impact on natural resources by making more efficient use of them. The environmental efforts carried out by each of our business areas, Bioscience, Hospital and Diagnostic, are detailed in this Report. Our strategy has focused on: making optimal use of materials and electricity, improving the recycling and reuse of waste, minimizing the impact throughout the entire water cycle and reducing atmospheric emissions. Grifols has put into effect an Environmental Management System on the corporate level which controls environmental aspects of the company s activities, products and services. Grifols establishes programs which define objectives for each of the different companies of the group. The data published in this report refers to the holding s manufacturing activities located in Spain and the United States over the last 5 years. 1 Data for donation centers Biomat USA and PlasmaCare, which were recently added to the group, not included.

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21 Paracanthurus hepatus Blue tang Habitat: Widely distributed from east Africa to the south of Hawaii and from Japan to Australia. Its preferred habitat are the terraces fl anking reefs. 2. Environmental organization

22 2 Environmental report Environmental organization 2. Environmental organization Grifols environmental management The group s environmental management is based on the following pillars: Environmental Policy, which is developed by the senior management and establishes common environmental principles that must be respected by all of the company s businesses. A homogeneous documentation system which includes a corporate manual and procedures which establish both operations and management of all environmental aspects. The different companies will incorporate guidelines concerning specific environmental aspects into their own documentation systems. Environmental conservation thereby becomes another requirement in the productive system. Environmental Committees in every company, with the participation of the Environmental department are composed of the General Manager, the Production Manager, R&D Manager, Technical Manager, Marketing Manager and other functions that are considered appropriate given the structure of the company. These Committees meet periodically in order to assess the company s environmental management and evaluate and decide which high priority environmental measures should be made into goals. The integration of the environmental variable in the company s different departments. The Production, Medical, Occupational Health and Safety, Engineering, Maintenance, Industrial Security, IS, Training, Corporate Communication, and R&D departments all take into account possible environmental impacts when establishing their work processes. The high degree of awareness in this regard has led to many suggestions being implemented, resulting in savings and improved management. All the Grifols companies in Spain have an Environmental Management System which is currently ISO 141 certified.

23 Grifols care for environment 21 Results Our environmental management allows us to: Obtain in-depth knowledge of the environmental aspects (consumption, waste, wastewater and emissions), both on the qualitative and the quantitative level of each production phase. With this knowledge we improve those aspects which have a greater environmental impact. It also allows us to establish procedures for minimizing this impact. Understand the legal and regulatory requirements to adapt the new facilities within the established timeframe and cultivate awareness of our legal obligations in this regard at all times. Know what pollution prevention measures are necessary, by anticipating possible environmental incidents or accidents, and establish procedures for handling such accidents or incidents to minimize their impact. Establish emergency instructions in case of accidents or incidents to minimize environmental impact. Count on our collaborators to increase our awareness of environmental issues, to identify opportunities for improvement or report situations which are not in compliance with sound environmental practices. Establish a self-regulating system of environmental performance, through the management of non-compliance reports, corrective and preventative actions, and internal audits, which include an annual review of all activities. Environmental management in Spain is verified externally each year by the certification entity TÜV Rheinland.

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25 Zebrasoma fl avescens Yellow tang Habitat: Pacifi c Oceans. Ryukyu, Marina, Marcus and Hawaiian islands. Lives in the shady reefs and can be found at a depth of anywhere between 2 and 4 meters. 3. Environmental performance

26 24 Environmental report Environmental performance 3. Environmental performance This year, Grifols production has continued to grow significantly in all its divisions, which, in turn, has led to an increase in environmental issues in four areas: consumption, waste, water cycle and emissions. Nevertheless, the increases in these four areas in most cases were proportionately lower than growth in production, because the company has strengthened ecoefficiency through resources management. Main results 28 Production Growth Bioscience Division 25% Hospital Division 6.4% Diagnostic Division 9% Water cycle In 28, 857,239 m3 of water were consumed, 13% more than in 27. The biological purification plant for the Bioscience Division in Spain is working at a yield of 98%. Emissions Direct and indirect CO emissions generated by natural gas 2 and electricity consumption (not including cogeneration) was 39,24 t, 3.6% lower than in 27. CO emissions caused by cogeneration were 1,3 t 2 (July through December). Greenhouse gas emission authorization was granted for the new cogeneration and combustion plants in Parets del Vallès. Consumption Electricity consumption was 71.9 million kwh, 4.2% higher than in the previous year. Natural gas consumption (not including cogeneration) was 61.9 million kwh, 11.2% lower than the previous year. The cogeneration plant in the Bioscience Division in Parets del Vallès has been fully operational since mid-28. Waste In 28, 13, t of waste were generated. 59.3% of waste was recovered (recycled or used as a byproduct).

27 Grifols care for environment Consumption Raw materials Consumption of raw materials has increased every year due to increased production in all divisions. One of the objectives of the production and R&D departments is to obtain a higher yield from raw materials per unit manufactured. Recycled materials are not used as raw materials because the safety and quality standards for pharmaceutical products do not permit their use. Total paper consumption of the holding reached 82 t, approximately 51% of which is fully recycled. The main raw materials consumed by each of the Divisions are illustrated below: 2.8 t plasma 1,5 t ethanol 85 t polyethylene glycol 9 t sorbitol Packaging 5 t PVC plastic BIOSCIENCE 28 Plasma derivative products Enteral solutions The Bioscience Division has an ethanol distillation tower which recovers up to 99.9% of treated ethanol. Consumption of acetone was reduced by 29% after the purification process of albumin was changed over to a diafiltration system. Acetone will eventually be phased out of the process. 6 km PVC fl at tubing 2,3 km PP fl at tubing 14 t glucose 85 t sodium chloride HOSPITAL 28 Parenteral solutions Washing and irrigation solutions In the Hospital Division nearly 3% of the bags for solutions are made from polypropylene (PP) rather than PVC. Packaging Injectables The Diagnostic Division is working with providers to increase the use of returnable packaging. The new DG Gel diagnostics cards, designed and manufactured by Diagnostic Grifols, have an improved format which reduces the amount of reagents needed in each card by more than 5%. The amount of packaging has also been optimized, saving more than 4% of the plastic and paperbased materials used per unit. 118, un. electronic mat. 7, units PCA boards 1 million plastic cards 7.1 t of reagents Packaging DIAGNOSTIC 28 in vitro diagnostic equipment Diagnostic reagents Blood collection bags

28 26 Environmental report Environmental performance Electrical Energy Electric consumption of all the production centers in Spain and the United States has increased to 71.9 million kwh, a 4.2% increase on the previous year, which was proportionally less than the increase in production across the three divisions. The Bioscience Division accounts for 82% of the total consumption, following a 6.2% increase since 27. The Diagnostic Division lincreased consumption by 4.3% and the Hospital Division reduced its consumption by 7.7%. Energy consumption management at Grifols was aimed at increasing the level of ecoefficiency. This is achieved by using fewer resources per unit produced. The amount used by Bioscience, which accounted for 74% of Grifols total revenue, has decreased the electrical consumption required for processing a liter of plasma by 35% since 24. Mill. kwh Consumption of electricity DIAGNOSTIC vs. production % Electricity consumption (mill. kwh) Production (% compared to 24) Consumption of electricity BIOSCIENCE vs. production Consumption of electricity HOSPITAL vs. production Mill. kwh % Mill. kwh % Electricity consumption (mill. kwh) Production (% compared to 24) Electricity consumption (mill. kwh) Production (% compared to 24)

29 Grifols care for environment 27 Consumption of electricity BIOSCIENCE vs. produced units KWh/liter of plasma fractionated Natural gas Natural gas is also used in the steam boilers and the hot water system used in the production and auxiliary processes at the facility. Natural gas is also used to power the cogeneration plant in Parets del Vallès (Barcelona). The Bioscience Division decreased its consumption of natural gas by 12% despite an increase in production, attributable to more effective usage of the useful heat generated by the cogeneration plant and less need for steam, hot water and cold water generated by conventional systems. Consumption of gas BIOSCIENCE vs. production Mill. kwh % Consumption of gas (mill. kwh) Production (% compared to 24) Consumption in 28, excluding that required for cogeneration, rose to 61.9 million kwh, 11% less than the previous year. 48 million kwh of natural gas was consumed in the cogeneration plant.

30 28 Environmental report Environmental performance The Hospital and Diagnostic Divisions have remained relatively constant in gas consumption despite increases in production. Consumption of gas HOSPITAL vs. production Consumption of gas DIAGNOSTIC vs. production Mill. kwh % Mill. kwh % Consumption of gas (mill. kwh) Production (% compared to 24) Consumption of gas (mill. kwh) Production (% compared to 24) 1 1 Cogeneration engines 2 Cogeneration system diagram

31 Grifols care for environment 29 New cogeneration plant for the Bioscience Division. In 27 construction began for a new 6.1 Mw cogeneration facility powered by natural gas in the Parets del Vallès plant. This facility was fully operational by June 28. The new plant replaced an existing 1.6 Mw facility which had outlived it useful life. The cogeneration system is made up of two 3 Mw engine generators powered by natural gas. On top of each there is a boiler which uses the heat from the combustion gases to produce steam. Heat from the motor cooling system is used in polyethylene glycol concentrators and in the absorption machine to produce cold and hot water needed for climate control. This plant can supply enough electricity to keep the plasma derivatives plant running if there is a cut in the power supply from the electric company, disconnecting itself from the power grid. The plant also saves on natural gas at the Parets del Vallès facility since it makes use of steam and useful heat in the same manufacturing facilities which, without the use of a cogeneration facility, would need to be generated in conventional boilers. The global output (GO) shows the plant s efficiency in supplying electricity and useful heat. It is defi ned as the quotient of electrical energy plus useful heat produced, divided by the natural gas consumed throughout the process. In a combined cycle power plant the GO is approximately 55% and at Grifols plant it is 69.7%. The equivalent electric output (EEO) shows the yield of a cogeneration plant compared to a conventional thermal power plant without heat recovery. The EEO at Grifols plant was 61.7% in 28. High efficiency plants using natural gas engines are required by law to reach a minimum of 55%. Grifols cogeneration plant produced 2,42 tons of emissions of CO 2 less than would have been produced if the company had purchased electricity from the Spanish electrical network plus the emissions produced by using natural gas to generate steam and useful heat. Another significant advantage is the proximity of these facilities to the industrial parks they serve. As a result, less energy is lost transporting electricity through high voltage networks. PARAMETERS OF GRIFOLS COGENERATION PLANT (*) Global output (%) 69.7 Equivalent electrical output (%) 61.7 CO 2 emissions (t) 1,3 Reduction in CO 2 emissions (t) 2,42 Electricity generated (MWh) 2,621 Total heat recovered (MWh) 7,131 Steam produced (MWh) 7,563 (*) data from July to December 28 2

32 3 Environmental report Environmental performance 3.2 Waste In 28, some 13, t of waste was generated by Grifols activities. This does not take into account the 1,4 t of ethanol recovered internally through distillation at the Bioscience Division in Parets del Vallès. Recycling of waste continues to be a priority in the company s environmental management policy. Recycling or using waste as a byproduct, gives a second life to these materials, unlike incinerating or dumping. In 28, 7,7 t, or 59.3% of waste generated by Grifols activities was externally recycled or managed as a byproduct. Ethanol is recovered at the Bioscience Division facility in Parets del Vallès using a distillation tower. 1,4 tons were recovered and reused in the production process in 28. The Hospital Division has increased production while decreasing waste by 3%. The majority of which being general waste, glass and packaging materials (cardboard and plastic). Despite an increase in production the Diagnostic Division has been able to maintain the same level of waste generated in this division. The quantity of packaging was decreased by 18% thanks to efforts carried out in collaboration with suppliers to use a greater number of returnable rather than disposable containers. Waste per Division The Bioscience Division generates 93.2% of the holding s waste. Polyethylene glycol, ethanol, acetone and general waste continue to make up more than 8% of the waste generated in this division Polyethylene glycol is used in the separation and purification of intravenous immunoglobulin to obtain Flebogamma DIF. An increase of 132% was observed in the number of batches manufactured for this product in 28, generating approximately 4, tons of this waste which are then used as a byproduct. Ethanol waste has grown 5% as a result of the increase in the number of liters of plasma fractionated in the United States. The United States facilities have implemented a new purifi cation process for albumin which does not require acetone. Acetone waste dropped by 25% in 28 and will eventually be eliminated over the next few years.

33 Grifols care for environment 31 t Waste management 9, 8, 7, 6, 5, 4, 3, 2, 1, Generation of Waste HOSPITAL vs. Production t % 1,2 1, Reused waste (byproduct-recycling) Eliminated waste Generation of waste BIOSCIENCE vs. Production t 14, % 22 12, 1, , , 1 4, 2, Generation of waste DIAGNOSTIC vs. Production % t Waste (t) Production (% compared to 24)

34 32 Environmental report Environmental performance Costs and investment associated with waste management Results of the new facilities capacity to reduce waste generated from polyethylene glycol 1 2 The total cost of waste management has risen 17% from last year to reach 1.4 million. 58% of which was spent on manufacturing in Spain and the remainder on facilities in the United States. 338,573 euros were invested in the improvement of waste management. Of which, 264,355 euros were used to increase storage capacity and concentration of polyethylene glycol waste for use as a byproduct. The remaining investment funds were earmarked for improvements to the existing plastic and glass crushing granulator for the Bioscience and Hospital Divisions in Spain. Cost of waste management 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, Polyethylene glycol is used in the separation and purification of intravenous immunoglobulin to obtain Flebogamma DIF. Once the solution has been used it turns into a liquid waste that must be disposed of. Since 24 this waste has been concentrated in Grifols plants and is managed as a byproduct. In anticipation of the production increase, in 27 the storage capacity of this waste was increased with a new 85 m 3 tank. A vacuum evaporator capable of processing 4 t/day was also brought in to replace the old concentrator. The instrument uses a vacuum to evaporate water at a low temperature of 42 ºC. In 28 a second evaporator with the same features and a new storage tank for concentrated polyethylene glycol was installed. This second instrument will process polyethylene glycol generated through the future production of Flebogamma DIF in Parets del Vallès. Approximately 12, t of aqueous polyethylene glycol (PEG) was transformed into 3,661 t of byproduct which can be used as a milling additive in the cement industry. Part of the water extracted from this concentration process (2,876 m 3 over the last 4 months) was redistributed to Grifols refrigeration towers on account of their superior reuse capacity. Evaporation is produced using the useful heat energy from the new cogeneration motors and does not require further consumption of heat from natural gas boilers

35 Grifols care for environment 33 Grifols Contribution to Integrated Waste Management Systems 1 SIGRE is the Spanish acronym for the Integrated System for the Management and Collection of Packaging and Medications in the pharmaceutical sector. Grifols participates in SIGRE through Instituto Grifols, Laboratorios Grifols and Movaco. Through SIGRE, member laboratories guarantee the correct collection and management of left-over medication waste, namely the medications and their packaging generated in households. The objectives of the Corporate Prevention Plan are to increase recycling activities and reduce the weight of packaging, making it more easy to recycle and minimizing its impact on the environment. 2 ECOASIMELEC is an integrated waste management system for electric and electronic equipment created in response to new laws in European Union (R.D. 28/25) which require electric and electronic equipment manufacturers to adopt the necessary measures for assuring that waste from equipment they sell are collected in a selective manner and handled in an environmentally sound way. Movaco, the Grifols company responsible for selling medical equipment in Spain, is registered as an Electric and Electronic Equipment distributor, and will adhere to this platform. This platform guarantees that equipment returned by customers at the end of its useful life is sent to authorized agents that break it down into its components for recycling and ensure the correct management of the waste.

36 34 Environmental report Environmental performance 3.3 Water Cycle USE CONSUMPTION Groundwater Company Product Cleaning Refrigeration Sanitation watering Purification Homogeneization Neutralization WASTE WATER Municipal sewage Municipal waste water treatment plant Water is both a scarce yet indispensible resource and is vital to Grifols production activities. For this reason, various measures are applied during the different stages of the water cycle: reduced consumption, internal reuse and improvements to wastewater. Water consumption and usage Industrial facilities have the highest water consumption levels due to their pharmaceutical production and auxiliary processes such as refrigeration. In 28, some 857,239 m3 of water were consumed, 13% more than the previous year. The water originates from both the supply network and from the company s own wells. The plants have access to authorized wells in some of the production plants in Spain where well water represents 36% of total water needs. In the Bioscience Division, although production rose by 25% in the year, water consumption increased only 22%. and sodium hydroxide. Two additional CIPs have been set up in facilities in the United States. - The United States has launched projects geared towards reducing water consumption, such as the replacement of vacuum pumps refrigerated by water and the replacement of inverse osmosis membranes used in water treatment. As a result, water consumption has been reduced by 7 m 3 per day. - Since 24, the Bioscience Division has reduced water consumption required for processing one liter of plasma by 23% through the adoption of a more ecoefficient process. The Hospital Division has decreased its water consumption by 1% while increasing the production of bottled products by more than 1 million liters. Relocating the Laboratorios Grifols production lines to the modernized facilities at the Autopista Industrial Park was instrumental in obtaining these results. Since 24, water consumption required for the production of one liter of product has decreased by 28%. The company has sought to reduce consumption in the following ways: - Recycling evaporated water from polyethylene glycol concentrators for use in refrigeration towers. Approximately 35 m 3 /day are currently being recycled. - Three high efficiency CIPs (clean-in-place) for cleaning the reactors have been validated by Grifols Engineering at the Bioscience facilities in Spain and consume 5% less water The Diagnostic Division consumes the least amount of water of all the divisions: 14, m 3 in 28.

37 Grifols care for environment 35 Water consumption BIOSCIENCE vs. production m 3 % 9, 8, 7, Water consumption HOSPITAL vs. production m 3 % 6, 5, 4, 3, 2, , 2, 15, 1, , 2 5, Water consumption DIAGNOSTIC vs. production m 3 % Water Consumption Bioscience vs. liters of fractionated plasma 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, Liters/liters Consumption of water (m 3 ) Production (% compared to 24) Liters of water/liters of fractionated plasma

38 36 Environmental report Environmental performance Wastewater The wastewater from all Grifols facilities goes to the pubic sewage system after which it undergoes further treatment at the municipal facilities. In the production plants, the wastewater goes through a homogenization and neutralization system before leaving the facilities. In the Bioscience Division in Parets del Vallès, a biological purification plant entered into operation at the end of In 28, the total organic content as measured by Chemical Oxygen Demand (COD) of the wastewater that went into the public sewage network stood at 694 tons, 7.8% less than in % of this organic material corresponds to the Bioscience Division, and in 29 the main waste streams with high organic content will be diverted to the new purification plant in order to continue reducing waste. Total COD in wastewater COD (t) Wastewater biological purification plant

39 Grifols care for environment 37 Wastewater purification plant performance In order to handle the increase in production from the Bioscience division s facilities in Parets del Vallès (Spain) and to reduce the organic material in resulting wastewater, a biological purification plant was built which entered into operation at the end of 27. Due to limited space in the plant, a high capacity bioreactor membrane system (MBR) was installed for treating the main waste streams with high organic content. This system combines biological processes and membrane fi ltration technology to treat wastewater. The wastewater is homogenized in a tank which feeds the reactor containing the activated sludge responsible for the purification process. This reactor also contains the ultrafiltration membranes unit. This unit uses filtration to separate the treated water from the reactor s activated sludge, which is free of solids. The reactor contains microorganisms which feed off of biodegradable organic materials in wastewater. The purification unit has BRM technology which concentrates the sludge up to four times more than a conventional treatment system is able to do. The sludge is periodically purged to maintain a constant concentration in the reactor. This sludge is fl occulated and centrifuged prior to its subsequent disposal as solid waste. High organic content has been detected in other residual streams from production. These streams will gradually be fed to the purifier on account of their biodegradability. PURIFICATION RESULTS 28 Volume treated annually 7,695 m 3 Average purification > 98% Solids in purified water < 1 mg/l Sludge managed 37 t Water management costs In 28, the cost of water management at Grifols companies stood at 59,211 euros. This cost does not include the supply, but rather the external fees for wastewater treatment, tax, analysis, and other expenses derived from treating this water. Investments in water management have risen 295,87 euros. 94% of this cost was dedicated to reducing consumption, as seen in the installation of CIPs (clean-inplace) systems and water recovery for reuse. In 28, the residual wastewater parameters from the Bioscience Division decreased by 24% at the Parets del Vallès plant. The reduction in organic materials of fi nal wastewater, measured as the Chemical Oxygen Demand, is on average 98% in the purification plant.

40 38 Environmental report Environmental performance 3.4 Atmospheric emissions GHG emissions When present in the atmosphere, Greenhouse Gases (GHG) contribute to the so-called greenhouse effect. Although these gases occur naturally in the atmosphere, humans and industrial activities have altered their concentrations to unnatural levels. rights from companies which have a surplus. Fewer rights will gradually be assigned in order to achieve an overall reduction in emissions. The new cogeneration plant in Parets del Vallès produces over 2 MW of thermal energy, hence Grifols is affected by the Kyoto Treaty. Grifols industrial activity generates certain gases classified as GHGs. The main emissions come from the use of natural gas (in boilers and cogeneration turbines) and from the electricity consumption. In 28 CO 2 emissions, not including those caused by cogeneration, were calculated at 39,24 tons, a 3.6% drop from 27. Grifols and the Kyoto Protocol The Kyoto Protocol on climate change is an international agreement which aims to reduce emissions of 6 gases, including carbon dioxide (CO 2 ), which contributes to global warming. Spain was one of the 184 countries to ratify this treaty. High efficiency cogeneration systems like those installed at Grifols are a priority for the EU on account of the benefi ts they generate in primary energy saving, the losses prevented in delivery and, above all, their ability to lower greenhouse gas emissions. All the energy produced in the cogeneration plant is sold to the network for use by nearby consumers. Grifols buys the energy required for production as needed. Cogeneration is peculiar because it increases local emissions to decrease global emissions. Grifols has received its quota for greenhouse gas emissions this year. In January 29 the first audit was performed by the accredited TÜV Rheinland which determined Grifols to be satisfactory. In order to comply with the commitments laid out in the treaty, the European Union has drafted a European Program for Climate Change in the form of an emission trading scheme. This multilateral greenhouse gas emission trading system is the largest in the world and a cornerstone of climate policy in the EU. The National Allocation for GHG emissions allots rights to each member state for companies which generate these gases, including cogeneration plants. In order to comply with the plan, each facility may either reduce emissions or buy Atmospheric emissions caused by the cogeneration plant in 28 rose to 1,3 t of CO 2 (from July to December).

41 Grifols care for environment 39 Emissions generated by transportation Transport is another source of GHG generated by Grifols activities. This includes: the transport of raw materials to and between production centers, the distribution of products, and transport requirements for the company s sales activity. Grifols manages the final distribution of products through Grifols International, which requests the following environmental information from contracted companies: environmental certification, fuel type, noise levels and the type of gas used in the refrigerated trucks. When contracting new commercial vehicles for the sales network the company takes into account information from the new car fuel consumption database of the IDAE (Institute for Energy Diversification and Saving) in Spain. CO 2 emissions generated by vehicles used by sales teams in Spain in 28 are estimated at 583 tons. Emissions per vehicle has remained practically constant since last year. Greenhouse Gases (GHG) t CO Indirect emissions (electricity consumed) 24,549 24,29 25,39 27,931 27,97 Direct emissions (natural gas consumed) 1,566 1,915 11,188 12,796 11,27 CO 2 emissions in tons 35,115 34,944 36,497 4,727 39,24 a regional market for emission rights in California (USA) which gives incentives for cleaner air. This system establishes emission levels which, if reduced, allow the company to sell its remaining rights on the market. In 28 the company sold NOx emission credits on the regional market for 5,986. Another atmospheric emission is in the form of water vapor from the refrigeration towers. These towers undergo periodic preventative maintenance, cleaning and disinfection to ensure that they are safe and operating correctly. The EU s environmental criteria for emissions from light-duty vehicles (Euro 5 and Euro 6 rules) are also taken into account in the purchase of internal transport vehicles. Other sources of emissions Boilers for producing steam and hot water also emit other gases such as CO 2 and NOx. Preventative maintenance of the emission points ensures that the emission of these gases is far below legal restrictions. The conservation refrigeration units for plasma, intermediate and end products use refrigeration gas which is another source of atmospheric emissions. All these facilities undergo preventative maintenance to prevent leaks. Most gases are ecological without chlorinated molecules that destroy the ozone layer. 185 Kg of gas was replaced in these chambers in 28, unchanged from the previous year. The NOx emissions from Grifols plant in Los Angeles are regulated by RECLAIM (Regional Clean Air Incentives Market),

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43 Pomacanthus imperator Emperor angelfi sh Habitat: Extensive habitat from the Red Sea to the Western Indian Ocean. Inhabits lagoons rich in coral and reefs at depths of between 3 and 7 meters.. 4. Objectives 28-21

44 42 Environmental report Objectives Objectives Overhead view of the Los Angeles facilities 2 Cogeneration plant at Parets del Vallès The Environmental Management program approved for the period sets out: The environmental strategies and measures for this period The needs and opportunities for improvement in accordance with Grifols growth profile The specifi c projects under each strategic line, with a timeframe and the required investment Program development is reviewed by Environmental Committees and each of the objectives planned for 28 were achieved by the end of this period. The program has been expanded to include other opportunities for improvement. Progress on the 28 objectives is detailed below. Consumption of Raw Materials Reduced consumption Change the albumin purifi cation method used in the Los Angeles facilities to that used in the Bioscience facilities in Spain, thereby gradually eliminating the use of acetone. Waste Management Improvements in recovery The capacity for concentrating and storing polyethylene glycol in Parets del Vallès plant has been increased. This byproduct is used as a milling additive in the cement industry. The company seeks alternatives for managing polyethylene glycol in the Bioscience Division in Los Angeles, prioritizing recycling over disposal. Improvements in storage Improvements have been made to waste storage in preparation for scheduled increases in production in the Parets del Vallès and Los Angeles production facilities. Reduction in waste generation The División Diagnostic will reduce the amount of packaging material required for its diagnostic cards with a new design. Efforts will also be made to increase the amount of returnable packaging materials used by suppliers. Water Cycle Improved storage Install 6 m 3 capacity tanks for sodium hydroxide instead of using 1 m 3 containers in Parets del Vallès. Reduction in consumption Gradual implementation of more efficient automated cleaning methods (CIPs) which consume less water and fewer alkalis in the Parets del Vallès and Los Angeles facilities.

45 Grifols care for environment 43 Reuse of water - Water can be recovered from different installations (polyethylene glycol evaporator, autoclaves) for reuse in other processes (e.g. refrigeration circuits). More than 7 m 3 will be reused daily by Hospital Division is launching a project for water reuse from its autoclaves. Improvement in wastewater quality - Last year wastewater treatment saw improvements at the Parets del Vallès facility. The next few years will see this trend continue, redirecting certain wastewater with higher organic content to the biological purification plant. - Effluents from the production process at the Los Angeles facilities have been identifi ed. This data will allow water management to be optimized at the new plants. Energy Efficiency and Renewable Energies New facilities - The new cogeneration facility at Parets del Vallès commenced operations in June 28. Over the next few years it will continue to maximize usage of useful heat generated, improve the efficiency of the facility and reduce CO 2 emissions and the use of natural gas. - The installation of two high efficiency boilers in the Murcia Hospital Division aimed at reducing natural gas consumption and atmospheric emissions, while improving the facility s profitability, will be studied. - A new solar power plant in Parets del Vallès will be installed by the end of 29. Improvements in transport - A transport program for Instituto Grifols in Parets del Vallès aims to increase the number of collective transport users. These measures will be implemented throughout the course of Reduce atmospheric emissions generated by commercial vehicles by contracting low-consumption vehicles with low CO 2 emissions. Environmental Management Environmental Management Systems are becoming increasingly coherent between the Spanish and US production facilities. 29 and 21 will see continued efforts towards the adoption of common systems and standards across all facilities. 2

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47 Zanclus cornutus Moorish idol Habitat: Indo-pacifi c region and found in tropical and temperate waters. West coasts of Australia, Hawaii, Mexico and Africa. 5. Environmental training, awareness and communication

48 46 Environmental report Environmental training, awareness and communication 5. Environmental training, awareness and communication 5.1 Training and awareness Raising awareness and training are the cornerstones of Grifols environmental policy since they call for the involvement of employees within their areas of responsibility. All employees located in Spain undergo environmental training sessions. In 28, 536 employees, the majority new hires, took part in these workshops. These comprise twohour sessions where the company s Environmental Policy is explained, as well as the environmental impact of its activities and how these are managed. In the United States, new hires receive a two hour orientation training in Occupational Health and Safety and the Environment. 99 people attended these workshops in Hours Awareness 2, Training 1, Employees Awareness 1, Training An on-line introductory session has been developed by the Human Resources Department which includes information on the company s environmental management. In addition to these programs, ongoing training is offered to collaborators who need to keep abreast of content which may apply to their specific line of work. Other training activities are carried out for those who require specific knowledge on any environmental issue.

49 Grifols care for environment 5.2 Communication Environmental communication between collaborators and the environmental department is still a very efficient manner of disseminating information, settling doubts and receiving suggestions regarding opportunities for improvement. The principal means of transmitting information are: Direct contact, by phone or through memos - Articles in the in-house magazine Cosmos - A suggestion box in the corporate intranet, the PORTAL In 28 there were more than 1 communications. Communications The articles published in the in-house magazine Cosmos reach the homes of all Grifols staff members. Articles last year included one on the children s drawing competition held to celebrate World Environment Day, the publication of the fourth environmental report and the start-up of the new cogeneration plant in Parets del Vallès. 47

50 48 Environmental report Environmental training, awareness and communication 1 Lara Figueras Montanini 6 years old The forest, animals and a waterfall 1st Prize (7 years and under category) 2 Ryan Gates 8 years old Global warming starts at home 1st Prize (8-12 years category) 3 Gonzalo Garrido Brázquez 5 years old The colors of my planet 2nd Prize (7 years and under category) 4 Anna Bodi 1 years old While some laugh, others cry 2nd Prize (8-12 years category) 5 Judith Prieto Méndez 4 years old The sea 3rd Prize (7 years and under category) 5.3 World Environment Day As in previous years, various activities were organized to celebrate World Environment Day on June 5. The company s annual bicycle ride through the Vallès Oriental area had more than 6 participants, including the families of employees. For the third consecutive year, Grifols organized a drawing competition for the children of employees. This year s theme was Planet Earth: Water and the Atmosphere. Catalonia, home to Grifols headquarters, had suffered a particularly severe drought during 28, which drove home the importance of this issue. The topic also tied into the UN World Environment Day s theme of Kick the Habit! Towards a Low Carbon Economy. There were two categories: under 7 years and 8 to 12 years. A local artist chose the three winners in each category. Over 2 drawings were sent in by 16 participants from Grifols various companies worldwide which are displayed on the intranet and at Albert Diago 9 years old Under the sea 3rd Prize (8-12 years category) 2

51 Grifols care for environment

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53 Pterophyllum scalare Angelfi sh South America. Central Amazon zone including areas of Peru and Ecuador. 6. Investments and expenses